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It's Baaaaaack: Interactive Brokers Just Hiked Silver Margins

Tyler Durden's picture




 

Here we go again...

Aug 03, 2011 10:43 EDT

 

NOTIFICATION - Margin Increase on Silver Derivatives 

 

In light of recent unprecedented volatility in silver markets, the exchanges that offer trading in silver derivative contracts are increasing the margin requirements on these products. In an effort to adequately address the inherent risk resulting from this volatility, IB is increasing margin requirements on silver derivative contracts to a level exceeding that which the exchanges are implementing.

 

Please monitor and manage your risk accordingly.

 

Interactive Brokers Customer Service

h/t Brian

 

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Wed, 08/03/2011 - 11:51 | 1520867 RobotTrader
RobotTrader's picture

 

 

So far, margin increase is having no effect whatsoever.

Huge volume coming into PAAS, so the shorts are running for the hills.

Wed, 08/03/2011 - 12:05 | 1520896 Long-John-Silver
Long-John-Silver's picture

I've said it before and I'll say it again. Margin hikes in Silver is a one trick pony and everyone has seen it. Anyone trading in Silver sense May know they are coming and have prepared for them. They are prepared for 100% margins because they will demand delivery so they can get 60% premiums to not take the delivery they demand. This game is over.

Wed, 08/03/2011 - 11:54 | 1520871 XitSam
XitSam's picture

LOL.  They already raised margins for volatility at this price level.

Wed, 08/03/2011 - 11:56 | 1520877 Happy Days
Happy Days's picture

LOL...attention IB...is your back office short Silver paper? Do your "Shorts" look brown. You will need to go long toilet paper and plungers. Ha Ha...we will eat you alive my friends...

Wed, 08/03/2011 - 11:57 | 1520878 FoieGras
FoieGras's picture

And why would this be newsworthy? Commodity margins have been increased and decreased a gazillion of times over the last 40 years of eletronic commodity trading history. Business as usual.

Wed, 08/03/2011 - 12:28 | 1520962 earnulf
earnulf's picture

Perhaps because the silver margins get hiked not only when the metal is hitting new highs, but then several more times to make sure it understands the beatdown lesson being administered.    Hiking margins on volitility is fine, but be consistant, not pick on one poor mans gold and beat it senseless to administer a lesson.  Only thugs and mafia/triad does that.

Wed, 08/03/2011 - 12:04 | 1520895 Happy Days
Happy Days's picture

If this is a repeat, sorry...the ISP over here sucks. 

Attention IB: Is your back office short silver so you need to cheat a little and take advantage of your clients? Are you in trouble...LOL!  Maybe those who have accounts at IB should dump them. By the way IB, are your shorts brown? Maybe you all need to go long toilet paper...LOL. From what I see here, I smell blood and we'll eat you alive...ha ha and ha^10!!!

Wed, 08/03/2011 - 13:02 | 1521110 MsCreant
MsCreant's picture

ha ha and ha10!!!

Wed, 08/03/2011 - 12:18 | 1520929 agNau
agNau's picture

Just like the QE, The effort(printing) required for the same effect increases exponentially with each additional round. So too with each additional margin hike. Their effect will decline. More physical buying by more individuals globally will push price higher regardless of how many margin hikes placed. Eco. 101.
Supply/Demand will rule.

Wed, 08/03/2011 - 12:18 | 1520930 Spigot
Spigot's picture

the exchanges that offer trading in silver derivative contracts are increasing the margin requirements on these products

IMO this relates to "derivatives" not futures. Derivatives would be say, delta hedges or other synthetics which reference futures and cash price.

Meh and MNNM (makes no never mind) since physical is where its at anyway.

Wed, 08/03/2011 - 12:29 | 1520971 mt paul
mt paul's picture

margin hike 

didn't even phase silver today...

broke above the cumo cloud 

heading toward 45.$...

 

fork lift long

silber..

Wed, 08/03/2011 - 12:41 | 1521005 mt paul
mt paul's picture

CME

best be careful...

they're playing with the big dogs now...

 

41.91 $ per

high of day

Wed, 08/03/2011 - 13:00 | 1521104 New American Re...
New American Revolution's picture

I'm waiting for the not too distant future date when they raise margins and the market just sluft's it off, because that date is coming.

Wed, 08/03/2011 - 13:16 | 1521178 Bastiat
Bastiat's picture

that date is coming.

I think it is here.

Wed, 08/03/2011 - 13:22 | 1521204 Overflow-admin
Overflow-admin's picture

"Please monitor and manage your risk accordingly."

 

Physical delivery bitchez! Oh and in an unrelated matter, Hildenbrand has just shit his pants again.

Wed, 08/03/2011 - 13:28 | 1521230 digalert
digalert's picture

RAT BASTARDS!

Wed, 08/03/2011 - 13:50 | 1521242 WVO Biker
WVO Biker's picture

So here is the deal:

Step 1: Sell Silver to anybody who buys on Comex

Step 2: Outlaw all new silver buying positions because they are a common effort by some bloggers to corner the silver market which is illegal

Only selling is allowed

Step 3: $$$ Billions -> bitches

It has been done before. Ask the Hunt bros.

-------------------------------------------------------------------------------

Edit - I was just joking, Please stop selling silver futures now.

 

Wed, 08/03/2011 - 13:32 | 1521253 PulauHantu29
PulauHantu29's picture

"Free markets?"

Not here.

The Fed is pouring Trillions into Financial Stocks while doing their BesT Efforts at thwarting ANY other stock from progressing while holding savings interest rates at ZIRP level crushing Savers and Seniors.

 

What an odd strategy.

Wed, 08/03/2011 - 14:17 | 1521465 Hat Trick
Hat Trick's picture

These fools are so short-sighted it's unbelievable! They can only see 10 feet in front of themselves. They should LOVE the actual "non-volatility" that we have experienced. Shaking out the weaker players and driving the price lower simply brings the now millions of physical buyers into the market - folks that won't be "shaken out" or cash in their chips, at least not for the foreseeable future. And the big boys are starting to jump in on the dips too. These moves make physical even harder to come by in the long run...ensuring that the parabolic move is even stronger. Gotta run, gotta stop by an ATM for some linen paper to turn into real money!

Wed, 08/03/2011 - 17:00 | 1521992 MrBoompi
MrBoompi's picture

Price manipulation downward in PMs is a very strange business indeed.  Letting the market decide the prices for ANYTHING these days just seems out of the question. 

I'll just keep buying physical silver every month, and at bonus time buy gold.  If the prices are lower because JPM and the Fed think it's better for them, I guess I'll just have to keep paying lower prices.  I just don't get it.

 

 

Wed, 08/03/2011 - 14:33 | 1521513 MFL8240
MFL8240's picture

US finacial system is a FRAUD!

Wed, 08/03/2011 - 14:57 | 1521569 JPMorgan
JPMorgan's picture

They just don't get it, well I say bring it on.

I personally enjoy buying silver at a discount.

At some point there is going to be huge squeeze and price will have to go much higher to get some silver flowing back out of safe hands. 

 

 

Wed, 08/03/2011 - 17:55 | 1522147 terryfuckwit
terryfuckwit's picture

yo folks.. please help me with this..4/5 months ago a Bulgarian gas fitter inspected our system and advised me to watch russia today for an alternative slant on the news..

I really enjoyed Keiser Reports got into his website and hence into zero hedge now i have slowly built a nest of silver ounces which i am very proud off and went for it cause the logic and fundamental seemed very good and zero have predicted amazing things better than MSM anyday.. So ye i am 100% convinced.. however my nagging doubt revolves around the possibility the scientists will do as they did with diamonds and produce them industrially in a cost effective way. My nightmare is reading that revelation on zero hedge that the gold and silver lifeboats have sunk..

i hope you folks can put my mind at rest and my potatoes are doing great.. thanks y' all

 

Wed, 08/03/2011 - 19:52 | 1522382 destraht
destraht's picture

Does anyone here think that silver will be dropping $4-5 real soon?  I'm up about $100 on a little SLV call option out to October and I'm thinking about selling it.  I already own physical and this is sort of play money, 'though wouldn't mind growing it.

Wed, 08/03/2011 - 20:35 | 1522463 nachtliche
nachtliche's picture

In otherwords, we can't handle the price going up so we have to manipulate the market. Whenever the price tanks, we do nothing.

Wed, 08/03/2011 - 21:19 | 1522566 suckerfishzilla
suckerfishzilla's picture

Maybe it's time for the great patriotic copper recycling drive.

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